Multinational Corporations operate in more than one country. They have production facilities in different countries around the world. Often they operate in countries which have entirely different culture than the culture of their home country. This impacts the company's human resource management policies. This essay is going to discuss the impact of different home culture and the culture of host country on the HRM policies of an organization. The essay will first describe the areas that come under HRM of the organization and how they are affected by the different cultures of home and host country. It will consider examples of various MNCs operating in different countries and will conclude with the outcome of the essay.
Human Resource Management is a broad term for personnel policies, recruitment and staffing, training and development, redundancy and other broad issues involving the workforce of an organization. Human Resource Policies are influenced by internal and external policies of an organization. Internal policies include management style and degree of centralization. The culture of host and home countries comes in the external factors of the organization. Together with government policies, culture makes the most important factor influencing the human resource management policies of multinational organizations.
[...] Jaussaud, J., & Liu, X. (2011). When in China . . . The HRM practices of Chinese and foreign-owned enterprises. Asia Pacific Business Review , 17 (4), 470-490. Kilduff, M. (1992). Performance and Interaction Routines in Multinational Corporations. Journal of International Business Studies, , 23 (1), 133-146. Kostova, T. (1999). Transnational Transfer of Strategic Organizational Practices: A Contextual Perspective. The Academy of Management Review , 24 (2), 308-324. Krishnan, R. (2005). Human Resource Practices and the Bottom Line in Russian Subsidiaries. [...]
[...] Human Resource Policies are influenced by internal and external policies of an organization. Internal policies include management style and degree of centralization. The culture of host and home countries comes in the external factors of the organization. Together with government policies, culture makes the most important factor influencing the human resource management policies of multinational organizations. The problem arises when a company operates in two countries one of which is developed and other is a developing organization. A company may have very strict recruitment and staffing policies of an organization. [...]
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